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Opinion

PM Trudeau’s “Monetary Policy” gaffe could cost the Liberals the election. But will it?

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8 minute read

Back in 1993 things were not going well for Canada’s Progressive Conservative Government.  Brian Mulroney’s government had served 2 mandates and Canadians were clearly ready to move on.  The Conservatives decided Kim Campbell would be the best leader to bring a renewed excitement to their reelection hopes.  Campbell was a fresh face and that was important to the party which was losing support quickly.  She was also from Vancouver, which was a nice change for the party normally represented by leaders from Ontario or Quebec.  Even more importantly, when she won the leadership she would become the first female leader of a country in North America.  As Canadians would discover just a few months later though, no one cared about any of that.  That campaign did not go well.  The Conservatives not only lost.  They were decimated right out of official party standing.  The governing party won just 2 seats in the entire nation (Jean Charest in Quebec, and Elsie Wayne in New Brunswick). Kim Campbell did not even win her own seat.  Henceforth the Reform Party represented the Conservative voice for the next two elections.

For one reason or another, Canadians simply did not connect with Kim Campbell.  One of the biggest gaffes of that election campaign came when a reporter pressed Campbell for details on an issue and she replied “The election is not a time to discuss serious issues.”  That was the wrong answer.  Despite what she may have truly meant, all Canadians heard was “I don’t need to explain anything to you.”.  That was exactly the wrong thing to say at the worst possible time.

Why bring this up now, 28 years later? Well Prime Minister Justin Trudeau has made his first major gaffe of this election campaign.   And for those who care about monetary policy (which should be everyone who pays taxes and works or has savings, etc) it’s very likely as stunning a statement as Kim Campbell made three decades ago.

First some background.  In 2021, Canadians find themselves in an astounding situation.  When the covid pandemic hit last year governments all over the world shut down their economies for weeks, and then months.  Government stimulus was the order of the day and Canada’s was among the most generous in the world.  People were paid to stay at home.  Businesses were paid to continue to provide jobs to people working from home.  Landlords were paid to keep tenants afloat.  All in all, government money is being spent at unprecedented rates.

To pay for all this the Trudeau government attempted to pass a bill through Parliament which would allow it to raise taxes at will without a budget and without even coming back to ask Parliament to present a plan or ask for approval.  That didn’t go over so well.  But instead of turning back the taps, or introducing a budget with higher taxes the government worked out a plan with the Bank of Canada.  How this works basically is that every month the Bank of Canada prints out a few billion dollars, and the government uses that to pay for all the stimulus they want.  Over the first year of covid that totalled about 350 Billion dollars!

The Bank of Canada has left the core function expressed in its mandate in order to print all this extra money.  Despite it’s best efforts to decouple inflation from the printing of extra money, it’s not working.  Canada’s inflation rate has been blowing through the target of 2% month after month after month.

This is the the mandate as expressed by the Bank of Canada itself on its website.

The Bank of Canada is the nation’s central bank. Its mandate, as defined in the Bank of Canada Act, is “to promote the economic and financial welfare of Canada.” The Bank’s vision is to be a leading central bank—dynamic, engaged and trusted—committed to a better Canada.

The Bank has four core functions:

  • Monetary policy: The Bank’s monetary policy framework aims to keep inflation low, stable and predictable.
  • Financial system: The Bank promotes safe, sound and efficient financial systems within Canada and internationally.
  • Currency: The Bank designs, issues and distributes Canada’s bank notes.
  • Funds management: The Bank acts as fiscal agent for the Government of Canada, managing its public debt programs and foreign exchange reserves.

The Bank of Canada’s mandate is expiring at the end of this year and the new mandate could change.  Some are saying the Bank should continue to print money at an unprecedented rate and Canadians will learn to live with high inflation.  Considering this drives up the cost of everything from our homes and vehicles, to the food we eat there could hardly be a more important issue.  That’s why PM Trudeau’s response to this question in Vancouver this week is so stunning.  When asked if he would consider a higher tolerance for inflation going forward here’s what he said.

 

Reporter Question about the renewal of the Bank of Canada mandate due at the end of 2021:

-Do you have thoughts about that mandate?  Would you consider a slightly higher tolerance for inflation?

Prime Minister Justin Trudeau: “When I think about the biggest, most important economic policy this government, if re-elected, would move forward, you’ll forgive me if I don’t think about monetary policy.” 

Of course this spurred an immediate reaction from the opposition Conservatives.  That oppostion is perhaps best summed up in this address from Pierre Poilievre.

The question is, will Canadians punish Prime Minister Trudeau for either lacking basic economic knowledge, or not caring about it?  Kim Campbell failed to win her own seat, but she did not seem to connect well with Canadians at all even before that election campaign.  Justin Trudeau has so far been immune to gaffes.  Even though he’s had more than 5 years in government, millions of Canadians stand by him loyally.  Will this time be any different?

Before Post

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Daily Caller

Suspect In Savage Knife Attack That Roiled Britain, Triggered Speech Crackdown Had Al-Qaida Manual At Home

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From the Daily Caller News Foundation 

By Nick Pope

The 18-year old suspect in a vicious July knife attack that left three young girls dead in the U.K. before triggering riots and a government crackdown on speech was in possession of an al-Qaida manual, according to Reuters.

Axel Rudakubana, who faces three murder charges and ten counts of attempted murder for the savage attack against a Taylor Swift-themed dance class in Southport, now faces additional charges for possessing an al-Qaida training guide and producing ricin, a highly toxic substance, Reuters reported  on Tuesday. Large riots broke out across the country following the attack as rumors spread that the perpetrator was a migrant, a radical Muslim, or both, prompting the liberal British government to crack down on speech on the internet.

The riots that followed the vicious attack rocked the U.K. for several days, with outraged crowds surrounding mosques, burning cars and attacking a hotel known to host migrants, according to Reuters and The New York Times. Prime Minister Keir Starmer, a member of the Labor Party, quickly attributed the unrest to “far-right thuggery.”

U.K. government officials subsequently warned people to “think before [they] post” and announced  that law enforcement personnel would review social media platforms to look for speech deemed to be inflammatory and likely to spark violence.

Citizens were warned against “publishing or distributing material which is insulting or abusive which is intended to or likely to start racial hatred,” in the words of Stephen Parkinson, the director of public prosecutions of England and Wales. “So, if you retweet that, then you’re republishing that and then potentially you’re committing that offense [incitement to racial hatred].”

“We do have dedicated police officers who are scouring social media,” Parkinson added. “Their job is to look for this material, and then follow up with identification, arrests, and so forth.”

More than 1,000 people were arrested for their involvement in the riots, and more than 30 were arrested for social media posts that authorities claim fueled the rioting, according to the BBC. Of those arrested for social media activity, at least 17 faced criminal charges for their posts.

“These are telling details and are important for Rudakubana’s trial,” British conservative pundit Douglas Murray wrote of the new revelations about the materials in the suspect’s possession. “But the authorities must have known this months ago – indeed, within hours of getting into Rudakubana’s house – meaning that people who were heavily criticized for spreading ‘fake news’ about the potential motive of the attacker now turn out to have said something that seems likely to have been true.”

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Censorship Industrial Complex

Joe Rogan Responds To YouTube Censorship of Trump Interview

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From Reclaim The Net

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Joe Rogan has accused YouTube of making it difficult for users to find his recent interview with former President Donald Trump, saying that the platform initially only displayed short clips from mainstream media instead of the full episode. Rogan sarcastically remarked on YouTube’s actions, saying, “I’m sure it was a mistake at YouTube where you couldn’t search for it. Yeah. I’m sure it was a mistake. It’s just a mistake.”

In episode 2200, Rogan explained that even though his team contacted YouTube multiple times, the episode remained difficult to find. X CEO Elon Musk intervened, contacting Spotify CEO Daniel Ek about the issue. (Spotify exclusively licenses The Joe Rogan Experience but allows the show on third-party platforms like YouTube.)

Watch the video clip here.

Rogan noted the explosive viewership once the content was available, with the episode racking up “six and a half million views on mine and eight plus million on his.”

Emphasizing the episode’s broad reach, Rogan expressed frustration with the initial suppression, stating, “You can’t suppress shit. It doesn’t work. This is the internet. This is 2024. People are going to realize what you’re doing.” He pointed to the significance of this episode’s reach, asking, “If one show has 36 million downloads in two days, like that’s not trending? Like what’s trending for you? Mr. Beast?”

Describing the power of YouTube’s algorithmic influence, Rogan claimed the algorithm worked against the interview’s visibility, only showing clips instead of the full conversation. According to him, when YouTube initially fixed the issue, users had to enter highly specific keywords, like “Joe Rogan Trump interview,” to find the episode.

Rogan argued that YouTube’s gatekeeping reflected an ideological stance, remarking, “They hate it because ideologically they’re opposed to the idea of him being more popular.” He suggested that major tech platforms, such as YouTube and Facebook, which hold significant influence, often push agendas that favor specific narratives, stating, “They didn’t like that this one was slipping away. And so they did something.”

In a telling moment, Rogan noted the impact of the initial suppression, explaining how “the interactions…dropped off a cliff because people couldn’t find it.” He claimed that this caused viewers either to give up or settle for short clips, leading to a dip in views before the episode gained traction on Spotify and X.

 

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